[Edaily Reporter Hyera Lee ] Daewon Hwasung ( DaewonChemical(024890)) announced on the 22nd that it had recorded a revaluation gain of 54.7 billion won following a revaluation of the land at its Osan plant.

The company announced the results of its asset revaluation for 18 parcels of land (totaling 46,203 square meters), including the land at its Osan Plant located in Oesammi-dong, Osan City, Gyeonggi Province, in a regulatory filing on the 18th. This revaluation was conducted to reflect the fair value of the company’s land holdings in its financial statements, thereby enhancing its actual asset value and financial stability.
As a result of the revaluation, the book value of the land increased from 36.2 billion won to 91.0 billion won, resulting in a revaluation gain of 54.7 billion won.
According to the company, the Osan Plant is considered to have a competitive location, as it is situated near Seodongtan Station and Sema Station and is close to planned urban development sites such as Oesammi District 1, Osan Sema District 2, and Yangsan District 4. The company explained that, with transportation infrastructure such as Byeongjeom Station and Buk-Osan Interchange, the property is expected to see an increase in asset value as a result of future development.
DaewonChemical stated that the portion of the revaluation gain, after accounting for corporate income tax effects and other factors, will be recognized as revaluation surplus in shareholders’ equity. Consequently, the company expects this to stabilize its financial structure by strengthening capital and improving its debt-to-equity ratio, while also expanding its flexibility in utilizing its held assets.
A DaewonChemical official said, “This asset revaluation is significant in that it reflects the fair value of our land holdings in the financial statements,” adding, “While strengthening our financial stability, we plan to pursue future asset utilization strategies after comprehensively reviewing business performance and market conditions.”
Meanwhile, DaewonChemical, having successfully returned to profitability last year, continued to post a profit in the first quarter of this year. The company is focusing on improving profitability and strengthening its growth foundation, primarily through its automotive interior materials and eco-friendly polyurethane (PU) materials businesses, as well as the expansion of its North American supply chain via its Mexican subsidiary.